Iran Demands Compensation, Reasserts Hormuz Control in Response to US Proposal

(MENAFN) Iran has submitted a counterproposal to a US peace plan that includes demands for financial compensation from Washington and a reaffirmation of its sovereignty over the Strait of Hormuz, according to Iranian state broadcaster Press TV.

The report said the proposal also calls for the lifting of sanctions imposed on Iran and the release of Iranian assets frozen overseas. Tehran rejected the US plan on the grounds that it would require acceptance of what it described as “excessive demands” from US President Donald Trump.

Iranian officials also emphasized what they called the “fundamental rights of the Iranian nation” in outlining their position, framing the response as a defense of national sovereignty and economic interests.

The exchange follows Trump’s statement on Sunday in which he said he had reviewed Iran’s response to the US initiative and described it as “TOTALLY UNACCEPTABLE,” signaling continued disagreement between the two sides over the terms of any potential settlement.

The broader context remains marked by sustained regional tensions that escalated after military strikes involving the United States and Israel against Iran earlier in the year. Those developments triggered retaliatory actions and heightened instability in key maritime zones, including the Strait of Hormuz, a critical global energy shipping route.

A ceasefire introduced in April through Pakistani mediation temporarily reduced hostilities, although subsequent negotiations in Islamabad reportedly failed to produce a lasting agreement. The truce was later extended by Trump without a fixed deadline while diplomatic efforts continued.

Iran’s latest position reinforces ongoing disputes over sanctions relief, asset freezes, and control of strategic waterways, all of which remain central sticking points in negotiations with Washington.

MENAFN11052026000045017281ID1111094926